FAQs
Johnson & Johnson is spinning off its consumer division, which could come with risks. Johnson & Johnson announced in November that it plans to spin off its consumer business into a new publicly traded company by November 2023. The news didn't surprise Wall Street.
What will JNJ shareholders get from Kenvue spinoff? ›
The exchange offer will permit Johnson & Johnson shareholders to exchange some, all or none of their shares of Johnson & Johnson common stock for shares of Kenvue common stock at a 7% discount, subject to an upper limit of 8.0549 shares of Kenvue common stock per share of Johnson & Johnson common stock tendered and ...
What happens to JNJ stock with the spin off? ›
What happens to JNJ stock when the company splits? Once Johnson and Johnson splits, JNJ stock will only give traders and investors exposure to the medical device and pharmaceutical proceeds of the company. The new company, which will be listed as Kenvue, will trade separately.
What is the issue with Johnson and Johnson? ›
Facing 50,000-plus lawsuits linking Baby Powder to cancer, Johnson & Johnson mulls a third bankruptcy filing. Johnson & Johnson has talc cases set for trial everywhere from Pennsylvania to California between November and December 2024.
Why is JNJ spinning off consumer? ›
Why is Johnson and Johnson going to split? Johnson and Johnson's split is aimed at refocusing the business and streamlining its operations. By removing the consumer arm, Johnson and Johnson will put more into developing medicines and medical devices, which brought in around $80 billion for the firm combined.
Should I keep JNJ stock? ›
Overall, the performance of JNJ stock with respect to the index has been quite volatile. Returns for the stock were 9% in 2021, 3% in 2022, and -11% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 24% in 2023 - indicating that JNJ underperformed the S&P in 2021 and 2023.
How many shares of Kenvue will JNJ holders receive? ›
For each share of Johnson & Johnson common stock that is validly tendered and not validly withdrawn by shareholders and that is accepted by Johnson & Johnson pursuant to the exchange offer, Johnson & Johnson will deliver 8.0324 shares of Kenvue common stock to or at the direction of any such tendering shareholder.
What happens to share price after spin off? ›
A company's stock price after completing a spinoff depends on whether any of the spun-off entity was retained. In a complete spinoff, the stock price of the company right before the spinoff should theoretically be equal to the sum of its post-spinoff stock price plus the initial stock price of the spun-off company.
What happens to my stock in a spin off? ›
Impact on Investors
The sum of the two stock prices typically approximates the parent company's pre-spinoff stock price. Spinoffs shares can lose value for a period of time after the new company is created for other reasons, as well. The drop can be due to parent company shareholders selling their spinoff shares.
Is Johnson and Johnson a risky stock? ›
Overall, the performance of JNJ stock with respect to the index has been quite volatile. Returns for the stock were 9% in 2021, 3% in 2022, and -11% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 24% in 2023 — indicating that JNJ underperformed the S&P in 2021 and 2023.
2024 Talcum Powder Lawsuit Update
Previously in January 2024, J&J announced it would pay $700 million to settle talc consumer protection claims in 42 states.
Why did Johnson and Johnson stock drop? ›
Shares of Johnson & Johnson (JNJ 0.05%) were sliding today as the diversified healthcare company edged past estimates in its fourth-quarter earnings report, but agreed to pay $700 million to settle lawsuits saying that its talc-based baby powder caused cancer.
Is there a lawsuit against Johnson and Johnson? ›
After failing to resolve a mountain of talcum-powder lawsuits through two unsuccessful bankruptcy attempts, Johnson & Johnson has agreed to a $700 million settlement that would free the company from some consumer protection claims—and a small part of the talc litigation that it faces.
Why is JNJ being sued? ›
Employer J&J Sued for Breach of Fiduciary Duties and Mismanagement of Its Group Health Plan. A class action lawsuit was just filed against drug manufacturer Johnson & Johnson (J&J) in its capacity as an employer and plan sponsor.
What does spinning off a company mean? ›
What is a Spin-Off? A Spin-Off refers to when a parent company sells a specific business unit or division, i.e. a subsidiary, to effectively create a new standalone company. As part of the spin-off, the parent company's existing shareholders are given shares in the new independent company.
What is the new name for JNJ consumer? ›
NEW BRUNSWICK, N.J. September 28, 2022 — Johnson & Johnson (the “Company”) (NYSE: JNJ) today took another step forward in establishing two independent, market-leading companies with the announcement of Kenvue as the name for the planned New Consumer Health Company.
How many shares of Kvue will JNJ shareholders get? ›
Johnson & Johnson (ticker: JNJ) said late Wednesday that the exchange ratio has been set at roughly 8.03 shares of Kenvue (KVUE) for each of its own shares.
What is the stock price prediction for Kenvue? ›
Kenvue Stock Forecast
The 13 analysts with 12-month price forecasts for Kenvue stock have an average target of 24.69, with a low estimate of 18 and a high estimate of 30. The average target predicts an increase of 28.13% from the current stock price of 19.27.
What to expect from JNJ earnings? ›
The company now expects sales of $88 billion to $88.4 billion. That compares with a previous forecast of $87.8 billion to $88.6 billion. J&J expects adjusted earnings of $10.57 to $10.72 per share.
What is JNJ payout? ›
Dividend Data
Johnson & Johnson's ( JNJ ) dividend yield is 3.13%, which means that for every $100 invested in the company's stock, investors would receive $3.13 in dividends per year. Johnson & Johnson's payout ratio is 33.48% which means that 33.48% of the company's earnings are paid out as dividends.